Solana price held steady on Monday morning even as the network’s outage challenges continued. The SOL token is trading at $90.50, which is about 11% above the lowest level in April. Its market capitalization remains at over $30 billion, making it one of the biggest cryptocurrencies in the world.
Solana suffers another outage
Solana price did well during the weekend as investors reacted to the latest outage in the network. During the weekend, the network suffered a seven-hour outage as the number of bots in the network rose. According to reports, these bots were attempting to mint NFTs in the network.
The specific NFT that was being attacked was Candy Machine. The rising number of these bots caused the mainnet to fall out of consensus and crash as nodes collapsed under the weight.
During the bot attack, traffic to the network soared to over 4 million transactions per second. In normal times, Solana is able to handle less than 3,000 transactions per second.
Solana has seen other outages in the past. For example, in January, it suffered an 18-hour outage. And in 2021, it suffered several multi-day outages, leading to significant disruptions in the network.
The rising outages in the network have had a negative impact on Solana’s network in the past few months. For one, the total value locked (TVL) in the network has dropped by 24% in the past month.
However, there have been some positives. For example, Solana was in the spotlight in April as the value of Stepn’s GMT continued jumping. It is now worth over $2 billion, making it the biggest move-to-earn cryptocurrency in the world. As such, Solana is positioning itself to be a major player in the Web 3.0 industry.
Solana price prediction
The SOL price has been in a bearish trend in the past few weeks. The current price has moved below the April high of $144. The price is approaching the important support level at $76.72, where it has struggled to move below this year. The coin has also dropped below the 25-day and 50-day moving averages while the MACD has moved below the neutral level.
A closer look also shows that the Solana price has formed a head and shoulders pattern. Therefore, there is a likelihood that the coin will have a major bearish breakout in May. This view will be invalidated if the coin moves above $76.72.